Speaker 1: It's time forward the b a qa A to b
Speaker 1: a q A what you say?
Speaker 2: The b a q eight with mandate the b a
Speaker 2: q what'da the b a qa A.
Speaker 3: Hello, beloved b a q A listeners, Let's get it
Speaker 3: back in this suit.
Speaker 2: I forgot that we're bringing back in this suit.
Speaker 3: I was also blown away by how many questions we
Speaker 3: had when we came back from the holiday. I was like,
Speaker 3: y'all were busy getting your lives and order.
Speaker 1: And asked us today we have to ask the track
Speaker 1: the questions. Now you guys want to know.
Speaker 3: Oh good, we got some juicy money questions. If you
Speaker 3: guys want to submit a question to the show, you
Speaker 3: know how to do it. Go to IG and slide
Speaker 3: into our d MS. If you'd like a chance to
Speaker 3: be seen in the studio in person and get your
Speaker 3: answers question live or wait answers answer, Wait questions answered
Speaker 3: live Wow baby Brain. Then submit a voice note through IG.
Speaker 3: You get sixty seconds to make your pitch for your question,
Speaker 3: and producer Emani may reach out to you and invite
Speaker 3: you on the show. Otherwise, you can go Old Fashion
Speaker 3: and email us from Brand Ambition Podcast at gmail dot
Speaker 3: com dot.
Speaker 1: Com we're going to do some Mulah questions this week.
Speaker 3: Money Honey, you're.
Speaker 2: Gonna jump right in with Ronia as No, Well, ron
Speaker 2: I saw ron La girl.
Speaker 3: You had it three different letters to.
Speaker 1: Where I could read ron La says and enjoin your
Speaker 1: content as per usual.
Speaker 2: Quick question, what hurts your credit score more?
Speaker 1: Lack of credit mix or low available credit that affects
Speaker 1: the debt to income ratio and porquet.
Speaker 2: Why keep up the great work, ron La.
Speaker 1: Great question, Well, ron La, there are five composers to
Speaker 1: your credit score, right, and so these are two of
Speaker 1: the opponents and they're literally on the opposite ends. So
Speaker 1: credit mix is ten percent of your score. So credit
Speaker 1: mix just means do you have a mix of ways
Speaker 1: that you're borrowing and paying back money. So one of
Speaker 1: the ways is revolving debt. That's basically credit card debt.
Speaker 1: You know you paid off, you could use it again,
Speaker 1: paid off, use it again. There's also it's a loan,
Speaker 1: but I forget the way like the no, what how
Speaker 1: do you installment? Yeah? Installment loans, So that's just like
Speaker 1: you know, I have a student loan that or I've
Speaker 1: got a car note and then I paid every month
Speaker 1: until it paid off, right, So they like to see
Speaker 1: a credit mix. And here's the reason why. Let's just
Speaker 1: say you say, like Mandy says, no, let's do me
Speaker 1: because I'm not a good cook. Let's just say I'm like, well,
Speaker 1: I'm a good cook. And I'm like, you're like and man,
Speaker 1: it said once you make girl, I was like spaghetti,
Speaker 1: you know, and what else? Girl? You know some other
Speaker 1: pasts of this, and it's like, girl, you made a
Speaker 1: good cook. You're good at noodles, right, because it doesn't
Speaker 1: show that I have a wide range of experience and
Speaker 1: doing a wide range of dishes, so I'm not really
Speaker 1: a good cook. The same thing for your credit if
Speaker 1: you only have you're like, oh, I have five different
Speaker 1: credit cards. It's like, okay, great, you're good at revolving debt,
Speaker 1: not necessarily other types of way to borrow and pay back. Okay,
Speaker 1: but that's only ten percent. You don't have to do
Speaker 1: anything there except for live a little longer, right, as
Speaker 1: somebody's grandma will say, you just got a live child,
Speaker 1: because as you get older you will incorporate naturally.
Speaker 2: Different types of debts.
Speaker 1: That's ten percent, now thirty percent is your basically amounts
Speaker 1: old you know, meaning how much. When you said how
Speaker 1: much credit do you have available, that's basically amount's old
Speaker 1: meaning what you could borrow from what you have borrowed.
Speaker 1: That's huge, And that's usually the thing that's taking people's
Speaker 1: score because thirty five percent is like payment history, meaning
Speaker 1: like do you pay off every month? Do you pay
Speaker 1: off in full? That's great, but you know, people don't
Speaker 1: realize that even if you're making your monthly payments on time,
Speaker 1: if you keep high balances in relation to your life limits,
Speaker 1: then you're taking your score. Ideally, if you want to
Speaker 1: raise your score, you want to be under fifteen ten percent,
Speaker 1: meaning if you have one hundred dollars limit on your card,
Speaker 1: no more than five ten dollars fifteen ten dollars on
Speaker 1: your on your card. You know, if you want to
Speaker 1: maintain your score, you could say at about the thirty percent
Speaker 1: mark and you'll be fine.
Speaker 2: And so the reason.
Speaker 1: Why it's it's more that I suspect credit bureaus take
Speaker 1: it's more important. It's because you know, if you owe
Speaker 1: too much, then you're then you you are more likely
Speaker 1: to default and not pay people back, versus if you
Speaker 1: have a variety of people that you owe, you know
Speaker 1: the credit mix, and so like owing too much in
Speaker 1: relationship to what you could borrow put you in a
Speaker 1: really dangerous space that if you lose your job, if
Speaker 1: you have some sort of crisis that comes up, that
Speaker 1: you're likely to not be able to pay anybody back.
Speaker 1: So ram Law, hope that's help anything many that I
Speaker 1: miss that I missed from now.
Speaker 3: Yeah, it was really hard to keep my credit utilization
Speaker 3: low early when I was remember when I was younger,
Speaker 3: because my limits were so low and I didn't really
Speaker 3: know how to use cards yet. But that gets easier
Speaker 3: the higher your limits are. And also I will say,
Speaker 3: if you have a lot of revolving credit card debt
Speaker 3: and it's tanking your score because it's like high in
Speaker 3: relation to your available limit, then maybe it's you could
Speaker 3: look into a personal loan because a debt consolidation loan,
Speaker 3: because a debt consolidation loan is not revolving. That's an
Speaker 3: installment loan. It's a fixed like you have fixed payments.
Speaker 3: You're going to pay it off a certain you know,
Speaker 3: after a certain period of time. So it helps you
Speaker 3: in two ways, Like it will immediately lower your the
Speaker 3: balance that you're revolving on credit cards, and then it
Speaker 3: also gives you that mix of different kinds of credit.
Speaker 3: But that's of course, like you have to look at
Speaker 3: your own situation and you know, to like compare credit
Speaker 3: card APR rates, like how expensive is your credit debt
Speaker 3: versus you know, a debt consolidation loan and what rate
Speaker 3: you can get and then actually pay that loan off
Speaker 3: because like some people get debt consolidation loans. You paid
Speaker 3: on your credit cards and you're like.
Speaker 2: Oh, I'm debt free, but no, you're.
Speaker 3: Not dead free. Yeah, good, good, good, solid question.
Speaker 2: Yes, keep them questions coming. What do we have next, Mandy?
Speaker 3: Oh, well, should we take a quick break and come
Speaker 3: back with question number two?
Speaker 2: Good?
Speaker 3: It's a doozy all right, BRB y'all. All right, we
Speaker 3: are back with number two, A question from listener Ell,
Speaker 3: who sent us an email. Okay, Elle says, hey, Madian
Speaker 3: in Tiffany. I am a home owning single, forty something
Speaker 3: with no kids. I have a decent job with a
Speaker 3: good income of about ninety thousand dollars a year. Prior
Speaker 3: to this year, I was a public school teacher and
Speaker 3: I just started and I decided. I decided when I
Speaker 3: started the new job to keep living as if my
Speaker 3: salary hadn't changed much.
Speaker 1: Oh.
Speaker 3: I love that I have money automatically deposited into specific
Speaker 3: savings accounts, but my emergency account took a hit when
Speaker 3: I had to replace my AC unit earlier this year,
Speaker 3: so unfortunately, all my accounts are in a building stage.
Speaker 3: As I mentioned, I own a home and idal i'd
Speaker 3: like to own a couple of homes, but I think
Speaker 3: it'll take me so long to build enough income to
Speaker 3: afford another one that I don't want to wait. My
Speaker 3: alternative is to sell the house I currently own and
Speaker 3: rent a place wherever I want, no longer tied to
Speaker 3: any one specific location. But I'm afraid that letting go
Speaker 3: of this house will be a big mistake, and that
Speaker 3: renting will open me up to a vulnerability that I
Speaker 3: haven't experienced. How do I know if selling my home
Speaker 3: is right for me? Thank you all.
Speaker 2: That's interesting?
Speaker 3: Okay, So she's like wanting to potentially sell her home
Speaker 3: move into a rental so that she has income to
Speaker 3: buy another couple of homes.
Speaker 2: Yes, and so like.
Speaker 1: I'm just listening to reading her ps about like her,
Speaker 1: I guess her house has flooded since then and she
Speaker 1: was inspired to send this letter after listening to me
Speaker 1: purchasing a condo and wanted to be a rich auntie.
Speaker 1: She's like, I want that too, because it just add
Speaker 1: some more context. So well, let me take a step back,
Speaker 1: back back, So what are you thinking, Mandie, Like, would
Speaker 1: you take a step back, like, I mean.
Speaker 3: I feel like renting. I'm trying to follow her thought process.
Speaker 3: I guess what she's thinking is if I rent a place,
Speaker 3: it'll be cheaper than maybe the cost of a home,
Speaker 3: and I can save more for a new property. And
Speaker 3: maybe there's so much equity in her home that she has.
Speaker 3: I'm wondering does she need to sell it or could
Speaker 3: she use like a home equity loan?
Speaker 1: Girl?
Speaker 3: Okay, good, go good, because I'm like, I'm trying to
Speaker 3: like pieces together. Yeah, if you if you want to
Speaker 3: leverage the equity in your home to then purchase a
Speaker 3: second property. You know a lot of ways that people
Speaker 3: do that is you can take out a home equity
Speaker 3: loan and then use that that loan as a down payment,
Speaker 3: you know, on your next property. I mean, and I'm
Speaker 3: assuming you'd want to like rent out that other property,
Speaker 3: which can be a great source of additional income. So
Speaker 3: I'm like, I don't know, I'm more opposed to like
Speaker 3: selling the not a pose, but like I'm a little
Speaker 3: like take a pause about selling in the house and
Speaker 3: maybe see if you can, yeah, leverage that loan a
Speaker 3: home equity loan to to have to have the funds
Speaker 3: to buy another property.
Speaker 1: Because if you ll which itself, like you did purchase
Speaker 1: your home before twenty and nineteen, you likely have a
Speaker 1: lot of equity because remember the houses the prices with
Speaker 1: the native run them up, grow and you in Florida,
Speaker 1: I know they ran your prices up, meaning that you
Speaker 1: have a lot more like almost unnatural equity. Even though
Speaker 1: home prices have come down, it's only like the new ones,
Speaker 1: you know, like not like the houses that were brought
Speaker 1: prior to twenty nineteen. They got their normal boost plus
Speaker 1: a supercharge boost, you know. So I just say all
Speaker 1: that to say that, like, you probably have equity in
Speaker 1: this home. And ultimately, when we're making decisions and I'm
Speaker 1: in this space now thinking to myself, like do I
Speaker 1: want to get this kindo?
Speaker 2: What do I want to do?
Speaker 1: YadA YadA YadA, that you have to ask yourself. Money
Speaker 1: is supposed to do what's best for you. You are
Speaker 1: not supposed to do what's best for money. I'm talking
Speaker 1: to me and you L, because I almost missed out.
Speaker 1: I'm purchasing this epic kind.
Speaker 2: And we'll see.
Speaker 1: It's still on the you know, still negotiating because I
Speaker 1: wanted to get a super deal and I underbid, and
Speaker 1: so because in my mind, I was putting money before
Speaker 1: what Tiffany wanted, which is not always a bad thing
Speaker 1: if you need to be in a financial space, you know.
Speaker 1: But I'm okay, and it's like, Tiffany, what is it
Speaker 1: that you want for Tiffany? And I want this place,
Speaker 1: so then I have to spend more money. And so
Speaker 1: I'm just telling you L. I want you to get
Speaker 1: clear on what does L want in general. And so
Speaker 1: because you can potentially get that, and to Mandy's point,
Speaker 1: you might say, you know what, because I know you
Speaker 1: have flooding or whatever, you might fix the house, let
Speaker 1: someone else pay the mortgage and rent it out.
Speaker 2: If you want to go rent someplace else by yourself,
Speaker 2: you can still do that.
Speaker 1: You could own your home, allow it to continue to
Speaker 1: you know, let the streets pay world, hey, you know,
Speaker 1: and then you can live wherever you want and your
Speaker 1: Airbnb you can live that fancy life while because the
Speaker 1: truth of the matter is home ownership is still a
Speaker 1: cornerstone for wealth in the US of A. You know,
Speaker 1: like because I'll give you example. I my husband and
Speaker 1: I am and you know Drella and I. We had
Speaker 1: purchased this property from the city for ten thousand dollars. Okay,
Speaker 1: it was a tear down basically, but we put one
Speaker 1: hundred and thirty thousand dollars into that house. We've just
Speaker 1: now that was about the house less than five years ago.
Speaker 1: Just sold it to his twin brother for basically three
Speaker 1: hundred thousand, like two ninety five, three hundred thousand, So
Speaker 1: you think yourself, basically put one forty into it, got
Speaker 1: back we doubled. That's what real estate can potentially, not
Speaker 1: every market can potentially, do you know. Or what I
Speaker 1: could have done is I could have just rented it
Speaker 1: out and pulled money out to do whatever I wanted
Speaker 1: to do.
Speaker 2: So I'm just.
Speaker 1: Saying that when you have real estate, you have the
Speaker 1: opportunity for that level of flexibility. So before you're like
Speaker 1: throw this house out the window, I'm going to sell it,
Speaker 1: really consider maybe I should just rent it out and see.
Speaker 2: What like this rent life outside of this looks.
Speaker 3: Like Yeah, and I'm wondering too if, like I get
Speaker 3: the sense because she's so she was inspired by your story,
Speaker 3: but the rich auntie life and she's forty. No kids
Speaker 3: like girl live in the dream, not the dream, but
Speaker 3: like a different dream. Don't you wish you kind of
Speaker 3: had it both ways? Anyway?
Speaker 1: Yeah?
Speaker 3: And and like you got this new job, I really
Speaker 3: want to know. I'm so fascinated by the public school
Speaker 3: teacher like journey, and I want to know what your
Speaker 3: new job is and how you got it because I'm
Speaker 3: just fascinated anyway. But I'm like, if this is what
Speaker 3: and you sound like you know renting what you like
Speaker 3: is you're not no longer tied tied to just one place.
Speaker 3: If you want some freedom, there's nothing stopping you from
Speaker 3: renting for a while figuring out if you want to
Speaker 3: buy a property somewhere else, if you want to live
Speaker 3: in that property and just have some freedom. You mentioned
Speaker 3: like the vulnerabilities that renting could open you up to,
Speaker 3: and I don't know what vulnerabilities. They may be different
Speaker 3: than owning a home. I don't know, Like, Tiff, what
Speaker 3: do you think like potential of make sure if you
Speaker 3: if you can't make your rent payments, but then you have.
Speaker 1: A house, say like you know, with renting, I mean
Speaker 1: to me, there's financial vulnerability because you don't really grow anything, right,
Speaker 1: and it's not necessarily depending on because I mean, for me,
Speaker 1: I can almost hear hear my head, ah home owner said,
Speaker 1: it doesn't always according to what I know, re meet
Speaker 1: we knew Like for example, in New York that makes
Speaker 1: sense because the amount that you're going to spend or pay,
Speaker 1: you know, because you know, owning in New York, it
Speaker 1: actually probably makes more sense in New York City to rent,
Speaker 1: you know, in a long financial run. But you know,
Speaker 1: for many parts of the country that's not necessarily true.
Speaker 1: So I just think that like I want you to
Speaker 1: have both. I want you to have like if you notice,
Speaker 1: even though I'm leaning into my rich auntie life, I'm.
Speaker 2: Still the budgetista.
Speaker 1: At the end of the day, right sold that house
Speaker 1: double my money, you know, and was like, but I'm
Speaker 1: still keeping the house I live in right now because
Speaker 1: I put this house I bought for one eighty, put
Speaker 1: one eighty into it, was that three sixty. The house
Speaker 1: is now worth well over four fifty, but I'm not
Speaker 1: selling it.
Speaker 2: I'm keeping it because it's going to continue to raise.
Speaker 1: You know, my sister and her kids will live in
Speaker 1: here and now like likely live in the condo.
Speaker 2: That condo.
Speaker 1: You know, we're closing around the five hundred thousand, you know, Mark,
Speaker 1: but I suspect you know, in five to ten years
Speaker 1: that place will be worth more. Although I'm not necessarily
Speaker 1: going to be selling it, you know, So I'm just
Speaker 1: saying that, like, as you are pursuing the softer rich
Speaker 1: auntie life, it has to be fueled by financial wisdom,
Speaker 1: you know, So just keep that in mind as you're
Speaker 1: making these decisions that we're not just here like remember
Speaker 1: you're here to tell money what to do, but you
Speaker 1: want to be telling your money what to do. Like, hey, money,
Speaker 1: this is the life I want to live. Let me
Speaker 1: be smart in these choices. So, but welcome sins.
Speaker 2: It's cute over here.
Speaker 3: Yeah, Well, thank you so much for sending your question
Speaker 3: into okrap. Was her name, el Ela el Ell. That
Speaker 3: was really great of you to send a question. Thank
Speaker 3: you so much. I want to know my follow up
Speaker 3: question is, like, what was your curer pivot from being
Speaker 3: a school teacher because I love that kind of stuff,
Speaker 3: and keep us posted all right on your journey, rich
Speaker 3: auntie journey. I feel like we have a lot of
Speaker 3: rich aunties listening to Brown Ambition.
Speaker 2: What girl I is here for the rich Johns we
Speaker 2: take the same time.
Speaker 1: I'm new to this riche Auntie live. Well, you know,
Speaker 1: well that's not true. I've been I made it, but
Speaker 1: I was a married with Johnty. So now that I'm
Speaker 1: a single with Chounty, I'm like, what y'all do out here? Like?
Speaker 2: What else should I be up to? I'm I think
Speaker 2: I want to take up crocheting. I know it doesn't satisfancy,
Speaker 2: but I'm like, what happens is that.
Speaker 3: For Michelle Obama? It's good enough for anyone?
Speaker 2: Okay, you know I'm in my.
Speaker 3: I'm in my we got food at home stage. That's
Speaker 3: the stage I'm in. Just ask my husband every day
Speaker 3: this week, I'm like, the menu will be leftovers. I
Speaker 3: love it all right, y'all. Well, we'll see y'all next
Speaker 3: week for more Brown Ambition. Send us your questions and
Speaker 3: we will see y'all later. Talk to you later. Bye, Hey,
Speaker 3: ba fam, We could not do this show without your support.
Speaker 3: Or the support of our team behind the scenes. The
Speaker 3: Brown Ambition Podcast is produced by Cumulus Podcast Network. It's
Speaker 3: edited by the wonderful Emani Crosby and produced by Tanya Bustos.
Speaker 3: Dennis Stimplinsky is our in house tech curu, and I
Speaker 3: am Bandy Wichard Santos your co host, and I will
Speaker 3: see y'all next week.